NEW DELHI: Domestic benchmark equity indices continued to trade in the negative for the second day today led by selling in financials and pharma counters amid mixed domestic and global cues.
FII buying has been the mainstay of the current rally, pushing it to record highs. Better than expected Q3 numbers so far has also helped the sentiments. However, analysts believe the market is likely to consolidate now.
"This has been a 'buy on dips' market for months now. Sustained FII buying has been the main catalyst behind this strategy. Of late, better than expected corporate results have been supporting this strategy. Nothing warrants a change in this strategy now. But the market is likely to move into a consolidation phase for the short-term since the big news regarding the US presidency is behind us and the milestone of 50,000 Sensex was reached," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“A positive surprise is the continuous flow of excellent corporate results. This will take away some concerns regarding valuations. Sustained FII inflows can deter the bears from going short.”
Factors driving markets
How are bluechips doing
After opening in the red, benchmark indices plunged lower. At 1.30 pm, BSE flagship Sensex was down 585 points or 1.18 per cent to 49,039. NSE benchmark Nifty followed and slipped 170 points or 1.17 per cent to 14,420.
In the 50-share pack Nifty, Bajaj Auto that came out with its earnings was the biggest gainer, up 7.28 per cent. Tata Motors, Hero Moto, Eicher Motors, M&M, Maruti Suzuki and Adani Ports were among other gainers.
Axis Bank was the top loser in the pack, down 2.09 per cent. ICICI Bank, Tech Mahindra, HDFC Bank, Reliance Industries, Divi’s Laboratories, Coal India and Kotak Mahindra Bank were other losers in the pack.
Broader markets
Broader market indices traded with gains outperforming their headline peers in the morning trade. Nifty Smallcap added 0.77 per cent, while Nifty Midcap climbed 0.47 per cent. Broadest index on NSE, Nifty 500, was up 0.16 per cent.
Future Retail, Apollo Tyres, Ashok Leyland, CEAT, Kajaria Ceramics and IDBI were among major gainers from the space while CanFin Homes, RVNL, Welspun Corps, SRF, Mphasis and Aarti Industries were under selling pressure.
Global markets
MSCI's broadest gauge of Asia Pacific stocks outside of Japan was off 0.2 per cent at 722.49 points, a whisker away from its all-time high of 727.31 touched on Thursday. Australia's benchmark index was down 0.2 per cent while Japan's Nikkei eased 0.4 per cent.
Chinese shares started on the backfoot with the bluechip CSI300 index down 0.1 per cent while Hong Kong's Hang Seng was off 0.1 per cent.
FII buying has been the mainstay of the current rally, pushing it to record highs. Better than expected Q3 numbers so far has also helped the sentiments. However, analysts believe the market is likely to consolidate now.
"This has been a 'buy on dips' market for months now. Sustained FII buying has been the main catalyst behind this strategy. Of late, better than expected corporate results have been supporting this strategy. Nothing warrants a change in this strategy now. But the market is likely to move into a consolidation phase for the short-term since the big news regarding the US presidency is behind us and the milestone of 50,000 Sensex was reached," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“A positive surprise is the continuous flow of excellent corporate results. This will take away some concerns regarding valuations. Sustained FII inflows can deter the bears from going short.”
Factors driving markets
How are bluechips doing
After opening in the red, benchmark indices plunged lower. At 1.30 pm, BSE flagship Sensex was down 585 points or 1.18 per cent to 49,039. NSE benchmark Nifty followed and slipped 170 points or 1.17 per cent to 14,420.
In the 50-share pack Nifty, Bajaj Auto that came out with its earnings was the biggest gainer, up 7.28 per cent. Tata Motors, Hero Moto, Eicher Motors, M&M, Maruti Suzuki and Adani Ports were among other gainers.
Axis Bank was the top loser in the pack, down 2.09 per cent. ICICI Bank, Tech Mahindra, HDFC Bank, Reliance Industries, Divi’s Laboratories, Coal India and Kotak Mahindra Bank were other losers in the pack.
Broader markets
Broader market indices traded with gains outperforming their headline peers in the morning trade. Nifty Smallcap added 0.77 per cent, while Nifty Midcap climbed 0.47 per cent. Broadest index on NSE, Nifty 500, was up 0.16 per cent.
Future Retail, Apollo Tyres, Ashok Leyland, CEAT, Kajaria Ceramics and IDBI were among major gainers from the space while CanFin Homes, RVNL, Welspun Corps, SRF, Mphasis and Aarti Industries were under selling pressure.
Global markets
MSCI's broadest gauge of Asia Pacific stocks outside of Japan was off 0.2 per cent at 722.49 points, a whisker away from its all-time high of 727.31 touched on Thursday. Australia's benchmark index was down 0.2 per cent while Japan's Nikkei eased 0.4 per cent.
Chinese shares started on the backfoot with the bluechip CSI300 index down 0.1 per cent while Hong Kong's Hang Seng was off 0.1 per cent.
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